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HomeMy WebLinkAbout071922-09.1CHANDLER ASSET MANAGEMENT,INC.|800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending June 30,2022 Town of Danville SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of June 30, 2022 1 Section 1 |Economic Update 2 Economic Update    Financial markets are experiencing heightened volatility and tighter conditions as central banks employ more restrictive monetary policies to combat persistent inflation.The conflict between Russia and Ukraine has exacerbated inflationary pressures,particularly with energy and commodities,and strict COVID lockdowns in China are intensifying distressed supply chains.Inflation is weighing heavily on consumer sentiment and beginning to impact discretionary spending.Labor markets remain strong,but wage gains are not keeping up with inflation.While we expect the Fed to continue to tighten monetary policy,the FOMC has very little margin for error as it attempts to combat inflation without pushing the economy into a recession. We continue to believe the risk of an economic slowdown later this year has increased.Over the near- term,we expect financial market volatility to remain intensified and conditions to remain tighter with persistent inflation, geopolitical risk,supply chain bottlenecks,and the Fed's shift to a more hawkish monetary policy. At the June meeting,persistently high inflation led the Federal Open Market Committee (FOMC)to announce a 0.75% federal funds rate increase to 1.50% - 1.75%.Federal Reserve Chair Powell indicated the committee may raise rates by 50 or 75 bps at the July meeting and continue to tighten as needed to dampen inflation.The Fed will continue shrinking its $9 trillion balance sheet by $47 billion per month as of June,increasing to $95 billion in September. We anticipate additional rates hikes as the Fed remains “committed”to the 2%long-term inflation target.In the second half of the year,monetary policy will be dependent on how the economy responds to tighter conditions. In June,yields rose,and the curve flattened.The 2-year Treasury yield soared 40 basis points to 2.96%,the 5-year Treasury yield increased 22 basis points to 3.04%,and the 10-year Treasury yield rose 17 basis points to 3.02%.The spread between the 2-year and 10-year Treasury yield fell to 6 basis points at June month-end,down from 29 basis points at May month-end, and down significantly from 122 basis points one year ago.The spread between 3-month and 10-year treasuries is wider at about 135 basis points but continues to compress with each Fed rate hike.The shape of the curve bears watching but does not indicate a high probability of an imminent recession. 3 Source:US Department of Labor Source:US Department of Labor Employment The U.S.economy added 390,000 jobs in May,and job gains in April were revised upward from 428,000 to 436,000.Trends in employment remain strong,with the three-month moving average payrolls at 408,000 and the six-month moving average at 505,000.Hiring was led by leisure and hospitality, responsible for more than a quarter of payroll gains for the month,followed by professional and business services.The unemployment rate remained unchanged at 3.6%,and the U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons,was 7.1%.Average hourly earnings rose 5.2%year-over-year in May,easing from a 5.5%year-over-year gain in April,which may reflect the beginning of a deceleration in wage growth that could help ease broad cyclical price pressures.The labor participation rate ticked up to 62.3%from 62.2%, a possible sign that higher wages and number of available jobs are compelling enough to draw workers back into the labor force. -8,000 -6,000 -4,000 -2,000 0 2,000 4,000 6,000 MO M Ch a n g e In (0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3 month average (000's) 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e (% ) 4 Source:US Department of Labor Source:US Department of Commerce Inflation The Consumer Price Index (CPI)hit a 40-year high in May with broad-based price increases for most goods and services.Headline CPI was up 8.6%year-over-year in May,up from 8.3%year-over-year in April.Core CPI (CPI less food and energy)was up 6.0%in May,down from 6.2%in April.Shelter,food,and gasoline were the largest contributors to the increase.The Personal Consumption Expenditures (PCE)index was up 6.3%year-over-year in May,unchanged from April.Core PCE was up 4.7%year-over-year in May,versus up 4.9%year-over-year in April. Persistently elevated levels of inflation are likely to keep the Federal Reserve on the path of tightening monetary policy as long as they continue to run well above the Fed’s longer-run target of around 2.0%. 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY %Change PCE Core Deflator YOY %Change YO Y ( %) Ch a n g e 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Consumer Price Index (CPI) CPI YOY %Change Core CPI YOY %Change YO Y ( %) Ch a n g e 5 Retail sales fell 0.3%in May from downwardly revised +0.7%April numbers,led by a significant decline in auto sales.Amid high inflation, consumers are showing softer demand for goods and are spending more on services.Retail sales growth is at risk as consumers dip into savings and assume more debt.On a year-over-year basis,retail sales were up 8.1%in May versus up 7.8%revised in April.The Consumer Confidence index fell to 98.7 in June from a downwardly revised 103.2 in May. U.S.consumer savings rates are declining,and the wealth effect is waning from recent financial market declines.While the average consumer still has capacity to spend from accumulated savings,higher wages,and credit lines,consumer balance sheets and discretionary spending decisions are increasingly pressured by elevated gas,food,and shelter costs. Source:US Department of Commerce Source: TheConference Board -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY %Change YO Y (% ) Ch a n g e 80 90 100 110 120 130 140 In d e x Le v e l Consumer Confidence Consumer 6 Source: TheConference Board Source: Federal Reserve Bank of Chicago Economic Activity The Conference Board’s Leading Economic Index (LEI)decreased 0.4%month-over-month in May,following a 0.4%decline in April.On a year- over-year basis,the LEI was up 3.0%in May versus up 4.4%in April.The May monthly decline was fueled by tumbling stock prices,a slowdown in housing construction,and gloomier expectations.The index remains near historical highs,but the decline suggests weaker economic activity is likely in near term.Likewise,the Chicago Fed National Activity Index (CFNAI) fell to +0.01 in May after a downwardly revised 0.40 in April.On a 3-month moving average basis,the CFNAI decreased to 0.20 in May from 0.40 in April. -8.00 -6.00 -4.00 -2.00 0.00 2.00 4.00 6.00 Chicago FedNational Activity Index (CFNAI) 3 Mo n t h Av e r a g e -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Leading Economic Indicators (LEI) MO M ( %) Ch a n g e 7 Source:US Department of Commerce Source:S&P Housing 2000 1800 1600 1400 1200 1000 800 600 400 200 0 MO M Ch a n g e (I n Th o u s a n d s of Un i t s ) Housing Starts MultiFamily Housing Starts Single Family Housing Starts 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index YO Y ( %) Ch a n g e Total housing starts declined 14.4%to an annual rate of 1,549,000 in May,from a revised 1,810,000 in units in April.Single-family home starts fell by 9.2%and multi-family fell 23.7%month-over-month.On a year-over-year basis,total housing starts decreased 3.5%,driven by multi- family.According to the Case-Shiller 20-City home price index,home prices were up 21.2%in April versus 21.1%year-over-year in March, setting another new record.While tight supply has continued to support prices, rising mortgage rates and affordability could be headwinds to further price growth. 8 Source:Institute for Supply Management Source: Federal Reserve Manufacturing The Institute for Supply Management (ISM)manufacturing index dropped sharply to a two-year low of 53.0 in June from 56.1 in May.Readings above 50.0 are indicative of expansion in the manufacturing sector.The decline was primarily driven by weakness in new orders due to softening consumer demand,supply constraints, and labor shortages.On a month-over-month basis,the Industrial Production index rose 0.2% in May,following a revised 1.4%increase in April.Capacity utilization rose to 79.0%in May,from a 78.9%revised April level.Although capacity utilization remains below its longer-run average of 79.6%,it is running above the pre-pandemic level of 76.3%. 66 64 62 60 58 56 54 52 50 48 46 44 42 40 Institute of Supply Management Purchasing Manager Index EXPANDING CONTRACTING -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Industrial Production YO Y ( %) Ch a n g e 9 Source:US Department of Commerce Source:US Department of Commerce Components of GDP 6/21 9/21 12/21 3/22 Personal Consumption Expenditures 7.9%1.4%1.8%1.2% Total 6.7%2.3%6.9%-1.6% Gross Private Domestic Investment -0.7%2.1%5.8%0.9% Net Exports and Imports -0.2%-1.3%-0.2%-3.2% Federal Government Expenditures -0.4%-0.4%-0.3%-0.5% State and Local (Consumption and Gross Investment)0.0%0.5%-0.2%-0.1% Gross Domestic Product (GDP) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% -35.0% GDP QOQ %Change GDP YOY %Change Gross Domestic Product (GDP) According to the third estimate,first quarter 2022 GDP contracted at an annualized rate of 1.6%,revised down from the second estimate of a 1.5%decline,and following fourth quarter 2021 growth of 6.9%.The weaker reading reflects a downgrade for growth in personal consumption expenditures from 3.1%to 1.8%.The most significant contributor to the decline was a widening of the trade deficit.The consensus estimate calls for 3.0%growth in the current quarter and 2.5%growth for 2022. 10 Federal Reserve Source: Federal Reserve Source:Bloomberg At the June meeting,persistently high inflation led the Federal Open Market Committee (FOMC)to announce a 0.75%federal funds rate increase to 1.50% - 1.75%.Federal Reserve Chair Powell indicated the committee may raise rates by 50 or 75 bps at the July meeting and continue to tighten as needed to dampen inflation.Dot plot projections rose significantly from March,with the median fed funds target rate at 3.4%by the end of this year and 3.8%in 2023.The Fed will continue shrinking its $9 trillion balance sheet by $47 billion per month beginning this month,increasing to $95 billion in September. We anticipate additional rates hikes as the Fed remains “committed”to the 2%long-term inflation target.Although the FOMC views the economy as strong,the committee downgraded their economic outlook as trends cool later this year from tightening conditions. 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% Effective Federal Funds Rate Yi e l d (% ) 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets In $ mi l l i o n s 11 Source:Bloomberg Source:Bloomberg 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d (% ) 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% US Treasury Yield Curve Jun-22 Mar-22 Jun-21 Yi e l d (% ) Bond Yields At the end of June,the 2-year Treasury yield was 271 basis points higher,and the 10-Year Treasury yield was about 155 basis points higher,year over-year.The spread between the 2-year Treasury yield and 10-year Treasury yield fell to 6 basis points at June month-end,down from 29 basis points at May month-end,which is narrow compared to the average historical spread (since 2003)of about 130 basis points.The spread between 3-month and 10-year treasuries is wider at about 135 basis points but continues to compress with each Fed rate hike.The shape of the curve bears watchingbut does not indicate a high probability of an imminent recession. 12 Section 2|Section 2 |Account Profile 13 Objectives Chandler Asset Management Performance Objective The performance objective is to achieve a return that equals the return on an unmanaged index of one-to- three year Treasury securities (a “market rate of return”). InvestmentObjectives The primary investment objectives of the Town of Danville are to preserve principal and to maintain adequate liquidity to meet the Town’s cash flow requirements.The Town expects to achieve a rate of return which is consistent with its primary objectives. Strategy In order to meet its objectives,the Town invests in securities permitted under California Government Code Section 53600 et seq.and under its Investment Policy.The maximum maturity of the Town’s investments isfive years,unless specifically authorized by the Town Council. As of June 30, 2022 14 Compliance As of June 30, 2022 Category Standard Comment U.S.Treasuries No Limitation; Obligations of the U.S.Treasury or securities guaranteed by the full faith and credit of the U.S.("Treasury obligations")excluding securities which have been stripped of their coupon Complies Federal Agencies No Limitation; Obligations guaranteed by the full faith and credit of agencies or instrumentalities of the U.S.government ("Agency obligations"), including,but not limited to FNMA, FFCB,FHLB,FHLMC.Complies Supranational Obligations "AA"rating category or higher by a NRSRO;30%max;5%max per issuer;USD denominated senior unsecured unsubordinated obligations;Issued or unconditionally guaranteed by International Bank for Reconstruction &Development (IBRD),International Finance Corporation (IFC),or Inter-American Development Bank (IADB); Complies Municipal Securities (CA,Local Agency) "A"rating category or better by a NRSRO;30%max;5%max per issuer;Include obligations of the Town,State of California, and any local agency within the State of California Complies Municipal Securities (CA,Other States) "A"rating category or better by a NRSRO;30%max;5%max per issuer;Any of the other 49 states,in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled,or operated by a state or by a department, board,agency,or authority of any of the other 49 states,in addition to California. Complies Corporate Medium Term Notes "A"rating category or higher by a NRSRO;30%max (Town Council Directive as of 7/21/16: 20%maximum.Of the 20%total permitted, up to 10%rated "A",and the balance rated "AA"or better);5%max per issuer Complies Agency Mortgage Pass-Through Securities 15%max;5%max per issuer; Issued by Agencies of the U.S.government only Complies Collateralized Mortgage Obligation (CMOs)and Asset Backed Securities (ABS) AAA rated by a NRSRO;15%max(combination of ABS and CMOs);5%max per issuer Complies Negotiable Certificates of Deposit (NCD) "A-1"short-term rated or higher by a NRSRO;and "A"long-term rating category or higher by a NRSRO;30%max;5%max per issuer;2 years max maturity Complies Bank/Time Deposits Funds on deposit in banks must be FDIC insured or collateralized in accordance with California Government Code Complies Banker’s Acceptances "A-1"short-term rated or higher by a NRSRO;and "A"long-term rating category or higher by a NRSRO;40%max;5%max per issuer;180 days max maturity Complies Commercial Paper "A-1"short-term rated or higher by a NRSRO;and "A"long-term rating category or higher by a NRSRO,if any;25%max;5% max per issuer;270 days max maturity;Issued by corporations organized and operating within the U.S.and having total assets in excess of $500 million Complies Money Market Mutual Funds Highest rating by two NRSROs;or SEC registered adviser with AUM >$500 million and experience greater than 5 years;20% max in Money Market Mutual Funds;20%max combined Money Market Mutual Funds and Mutual Funds Complies Mutual Funds Highest rating by two NRSROs;or SEC registered adviser with AUM >$500 million and experience greater than 5 years;10% max per one Mutual Fund;20%max combined Money Market Mutual Funds and Mutual Funds Complies Town of Danville -All Accounts Assets managed by Chandler Asset Management are in full compliance with state law and the Client’s investment policy. 15 Compliance As of June 30, 2022 Category Standard Comment Local Agency Investment Fund (LAIF)30%max or $10 million,whichever is higher; The amount invested in LAIF should be based upon the Town's cash flow needs and the difference in yield paid upon funds invested in LAIF compared to other investment options authorized by the policy.Complies Repurchase Agreements 15%max;30 days max maturity;Market value of securities shall not be < 102%of the repurchase amount;Collateralized by Treasury or Agency obligations;Delivered to the Town's custody bank;Not used by Investment Adviser Complies Prohibited Inverse floaters,range notes,mortgage derived interest-only strips;zero interest accrual if not backed by US Government; Trading securities for the sole purpose of speculating on the future direction of interest rates;Purchasing or selling securities on margin;Reverse Repurchase Agreements; Securities lending;Foreign currency denominated securities Complies Max Per Issuer 5%max per issuer,with the exception of LAIF,Treasuries,Agencies,Money Market Mutual Funds;or unless otherwise stated in the investment policy Complies Maximum Maturity 5 years Complies Town of Danville -All Accounts Assets managed by Chandler Asset Management are in full compliance with state law and the Client’s investment policy. 16 Portfolio Characteristics Danville Short TermTreasury Pool 06/30/22 03/31/22 Benchmark*Portfolio Portfolio Average Maturity (yrs)1.84 1.93 1.93 Average Modified Duration 1.78 1.73 1.76 Average Purchase Yield n/a 1.26%1.14% Average Market Yield 2.95%2.97%2.09% Average Quality**AAA AA+/Aa1 AA+/Aa1 Total Market Value 84,274,938 79,689,525 *ICE BofA 1-3 Yr US Treasury Index **Benchmark is a blended rating of S&P,Moody’s, and Fitch.Portfolio is S&P andMoody’s respectively. As of June 30, 2022 17 Danville Short TermTreasury Pool Sector Distribution ABS 6.6% Agency 35.4% Corporate 14.8%LAIF 0.1% Money Market Fund 0.3% Supranational 3.0% US Treasury 39.9% June 30,2022 March 31,2022 ABS 6.2% Agency 38.2% Corporate 17.1%LAIF 0.1% Money Market Fund 0.4% Supranational 4.6% US Treasury 33.5% As of June 30, 2022 18 Issue Name Investment Type %Portfolio Government of United States US Treasury 39.89% Federal National Mortgage Association Agency 9.97% Federal Home Loan Mortgage Corp Agency 9.88% Federal Farm Credit Bank Agency 9.72% Federal Home Loan Bank Agency 5.81% Toyota ABS ABS 1.45% Apple Inc Corporate 1.45% Inter-American Dev Bank Supranational 1.40% Deere &Company Corporate 1.31% John Deere ABS ABS 1.28% Toyota Motor Corp Corporate 1.20% MasterCard Inc Corporate 1.15% Honda Motor Corporation Corporate 1.15% International Finance Corp Supranational 1.15% Charles Schwab Corp/The Corporate 1.14% Amazon.com Inc Corporate 1.13% Paccar Financial Corporate 1.03% Caterpillar Inc Corporate 1.02% Wal-Mart Stores Corporate 0.95% Honda ABS ABS 0.91% US Bancorp Corporate 0.90% Bank of New York Corporate 0.90% JP Morgan Chase &Co Corporate 0.83% Hyundai Auto Receivables ABS 0.68% GM Financial Automobile Leasing Trust ABS 0.53% GM Financial Securitized Term Auto Trust ABS 0.50% Mercedes-Benz Auto Lease Trust ABS 0.41% Intl Bank Recon and Development Supranational 0.41% BMW ABS ABS 0.35% ChevronTexaco Corp Corporate 0.30% State Street Bank Corporate 0.30% BMW Vehicle Lease Trust ABS 0.29% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund 0.28% Nissan ABS ABS 0.23% Local Agency Investment Fund LAIF 0.09% TOTAL 100.00% Issuers Danville Short TermTreasuryPool – Account #21 As of June 30, 2022 19 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 ICE BofA 1-3 Yr US Treasury Index 5+ Danville Short Term Treasury Pool Danville Short TermTreasury Pool Portfolio Compared to the Benchmark 0 -0.25 0.25 -0.50 0.50 -1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 3.4%3.7%18.0%34.4%31.9%8.5%0.0%0.0% Benchmark*0.0%0.0%3.0%57.7%39.3%0.0%0.0%0.0% *ICE BofA 1-3 Yr US Treasury Index Duration Distribution As of June 30, 2022 20 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ June 30,2022 March 31,2022 Danville Short TermTreasury Pool June 30, 2022 vs.March 31, 2022 0 -0.25 0.25 -0.50 0.50 -1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 06/30/22 3.4%3.7%18.0%34.4%31.9%8.5%0.0%0.0% 03/31/22 5.1%4.0%9.6%39.3%32.7%9.3%0.0%0.0% Duration Distribution As of June 30, 2022 21 0.00 0.50 1.00 1.50 2.00 2.50 Pe r c e n t (% ) Historical Average Purchase Yield Danville Short TermTreasury Pool Purchase Yield as of 06/30/22 = 1.26% As of June 30, 2022 22 Growth of $1 Million GrowthOver Time As of June 30,2022 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Danville Total Return Danville Realized Return LAIF As of 06/30/2022 Dollar Value Return Danville Total Return $2,470,656 3.37% Danville Realized Return $2,509,030 3.43% Historical Return of $1 Million Invested on March 31,1995 LAIF $1,995,376 2.57%23 Total rate of return: A measure of a portfolio’s performance over time.It is the internal rate of return,which equates the beginning value of the portfolio with the ending market value;it includes interest earnings, realized and unrealized gains and losses in the portfolio.Realized rate of return: A measure of a portfolio’s return over time.It is the internal rate which equates the beginning book value of the portfolio with the ending book value;it includes interest earnings,realized gains and losses in the portfolio. 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% -3.00% -4.00% 12 months 2 years 3 years Since Inception Danville Short Term Treasury Pool 5 years 10 years ICE BofA 1-3 Yr US Treasury Index Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Danville Short Term Treasury Pool -0.52%-3.08%-1.43%0.39%1.10%0.94%3.37% ICE BofA 1-3 Yr US Treasury Index -0.50%-3.30%-1.63%0.24%0.94%0.79%3.12% REALIZED RATE OF RETURN Danville Short Term Treasury Pool 0.30%1.35%1.55%1.73%1.70%1.42%3.43% Investment Performance Danville Short TermTreasury Pool Total and Realized Rate of Return Annualized Since Inception March 31,1995 As of June 30, 2022 24 Portfolio Characteristics Danville NERIAD Improvement Fund (89-1 90A) 06/30/22 03/31/22 Benchmark*Portfolio Portfolio Average Maturity (yrs)0.15 0.36 0.61 Average Modified Duration 0.15 0.36 0.60 Average Purchase Yield n/a 0.58%0.57% Average Market Yield 1.50%1.15%0.70% Average Quality**AAA AAA/Aaa AAA/Aaa Total Market Value 864,872 865,644 *ICE BofA 3-Month US Treasury Bill Index **Benchmark is a blended rating of S&P,Moody’s, and Fitch.Portfolio is S&P andMoody’s respectively. As of June 30, 2022 25 Issue Name Investment Type %Portfolio Government of United States US Treasury 98.92% Wells Fargo Adv Tsy Plus Money Market Fund Money Market Fund 1.08% TOTAL 100.00% Issuers Danville NERIAD Improvement Fund (89-1 90A) – Account #24 As of June 30, 2022 26 Section 3 |Portfolio Holdings 27 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration ABS 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.780%Due 08/15/2023 107,722.04 08/20/2019 1.79% 107,721.14 107,721.98 99.90 2.37% 107,616.69 85.22 0.13% (105.29) Aaa /AAA NR 1.13 0.17 477870AC3 John DeereOwner Trust 2019-B A3 2.210%Due 12/15/2023 35,424.87 07/16/2019 2.23% 35,417.35 35,422.38 99.95 2.44% 35,408.75 34.80 0.04% (13.63) Aaa /NR AAA 1.46 0.21 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.930%Due 07/15/2024 195,685.84 10/16/2019 1.94% 195,675.51 195,681.38 99.70 2.98% 195,101.72 167.85 0.23% (579.66) Aaa /AAA NR 2.04 0.29 47789KAC7 John DeereOwner Trust 2020-A A3 1.100%Due 08/15/2024 186,590.33 03/04/2020 1.11% 186,578.94 186,584.87 98.99 3.46% 184,702.41 91.22 0.22% (1,882.46) Aaa /NR AAA 2.13 0.43 58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3 0.400%Due 11/15/2024 360,000.00 06/22/2021 0.40% 359,972.82 359,983.55 96.81 3.55% 348,524.28 64.00 0.41% (11,459.27) NR /AAA AAA 2.38 1.02 05601XAC3 BMW Vehicle Lease Trust 2022-1 A3 1.100%Due 03/25/2025 255,000.00 01/11/2022 1.11% 254,961.88 254,969.69 96.55 3.84% 246,201.23 46.75 0.29% (8,768.46) NR /AAA AAA 2.74 1.27 36266FAC3 GM Financial Auto Lease Trust 2022-2 A3 3.420%Due 06/20/2025 450,000.00 05/03/2022 3.45% 449,953.07 449,956.06 99.49 3.74% 447,701.85 470.25 0.53% (2,254.21) NR /AAA AAA 2.98 1.71 47788UAC6 John DeereOwner Trust 2021-A A3 0.360%Due 09/15/2025 255,000.00 03/02/2021 0.37% 254,950.99 254,968.81 96.15 3.93% 245,184.54 40.80 0.29% (9,784.27) Aaa /NR AAA 3.21 1.08 89190GAC1 Toyota Auto Receivables Trust 2021-B A3 0.260%Due 11/17/2025 1,025,000.00 06/08/2021 0.26% 1,024,889.61 1,024,926.03 96.26 3.91% 986,690.63 118.44 1.17% (38,235.40) NR /AAA AAA 3.39 1.03 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.880%Due 01/21/2026 260,000.00 11/16/2021 0.89% 259,945.19 259,955.32 95.37 3.78% 247,970.58 63.56 0.29% (11,984.74) Aaa /NR AAA 3.56 1.62 47789QAC4 John DeereOwner Trust 2021-B A3 0.520%Due 03/16/2026 310,000.00 07/13/2021 0.52% 309,972.35 309,979.51 94.89 3.90% 294,169.23 71.64 0.35% (15,810.28) Aaa /NR AAA 3.71 1.53 89238JAC9 Toyota Auto Receivables Trust 2021-D A3 0.710%Due 04/15/2026 245,000.00 11/09/2021 0.71% 244,994.78 244,995.78 95.28 3.79% 233,441.64 77.31 0.28% (11,554.14) NR /AAA AAA 3.79 1.56 43815BAC4 Honda Auto Receivables Trust 2022-1 A3 1.880%Due 05/15/2026 425,000.00 02/15/2022 1.89% 424,936.08 424,943.03 96.81 3.55% 411,428.90 355.11 0.49% (13,514.13) Aaa /AAA NR 3.88 1.94 05602RAD3 BMW Vehicle Owner Trust 2022-A A3 3.210%Due 08/25/2026 300,000.00 05/10/2022 3.23% 299,984.40 299,985.01 98.96 4.46% 296,875.50 160.50 0.35% (3,109.51) Aaa /AAA NR 4.16 0.85 47787JAC2 John DeereOwner Trust 2022-A A3 2.320%Due 09/16/2026 330,000.00 03/10/2022 2.34% 329,927.00 329,933.11 97.45 3.74% 321,594.57 340.27 0.38% (8,338.54) Aaa /NR AAA 4.22 1.82 448977AD0 Hyundai Auto Receivables Trust 2022-A A3 2.220%Due 10/15/2026 595,000.00 03/09/2022 2.23% 594,977.09 594,979.16 96.92 3.83% 576,674.60 587.07 0.68% (18,304.56) NR /AAA AAA 4.30 1.95 380146AC4 GM Financial Auto Receivables 2022-1 A3 1.260%Due 11/16/2026 170,000.00 01/11/2022 1.27% 169,985.23 169,987.21 95.68 4.09% 162,650.90 89.25 0.19% (7,336.31) NR /AAA AAA 4.38 1.55 As of June 30, 2022 28 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 362585AC5 GM Financial Securitized ART 2022-2 A3 3.100%Due 02/16/2027 260,000.00 04/05/2022 3.13% 259,945.66 259,949.09 99.09 3.60% 257,645.18 335.83 0.31% (2,303.91) Aaa /AAA NR 4.64 1.90 TOTAL ABS 5,765,423.08 1.50% 5,764,789.09 5,764,921.97 3.75% 5,599,583.20 3,199.87 6.65% (165,338.77) Aaa /AAA Aaa 3.46 1.36 Agency 313383WD9 FHLB Note 3.125%Due 09/09/2022 1,000,000.00 11/05/2018 3.10% 1,000,830.00 1,000,041.41 100.25 1.80% 1,002,497.00 9,722.22 1.20% 2,455.59 Aaa /AA+ AAA 0.19 0.19 3133EKY91 FFCB Note 1.375%Due 10/11/2022 1,500,000.00 10/15/2019 1.64% 1,488,585.00 1,498,932.79 99.89 1.76% 1,498,380.00 4,583.33 1.78% (552.79) Aaa /AA+ AAA 0.28 0.28 3135G0T94 FNMA Note 2.375%Due 01/19/2023 1,500,000.00 03/18/2019 2.46% 1,495,455.00 1,499,345.16 99.94 2.48% 1,499,130.00 16,031.25 1.80% (215.16) Aaa /AA+ AAA 0.56 0.54 3130ADRG9 FHLB Note 2.750%Due 03/10/2023 900,000.00 03/28/2019 2.24% 917,136.00 902,994.64 100.12 2.57% 901,100.70 7,631.25 1.08% (1,893.94) Aaa /AA+ NR 0.69 0.68 3137EAER6 FHLMC Note 0.375%Due 05/05/2023 1,330,000.00 05/05/2020 0.39% 1,329,441.40 1,329,842.59 97.91 2.89% 1,302,157.78 775.83 1.55% (27,684.81) Aaa /AA+ AAA 0.85 0.83 3135G04Q3 FNMA Note 0.250%Due 05/22/2023 1,425,000.00 05/20/2020 0.35% 1,420,710.75 1,423,726.93 97.72 2.84% 1,392,579.83 385.94 1.65% (31,147.10) Aaa /AA+ AAA 0.89 0.88 3133ELG81 FFCB Note 0.300%Due 06/08/2023 1,500,000.00 06/02/2020 0.33% 1,498,875.00 1,499,648.63 97.59 2.92% 1,463,833.50 287.50 1.74% (35,815.13) Aaa /AA+ AAA 0.94 0.92 3133834G3 FHLB Note 2.125%Due 06/09/2023 1,500,000.00 06/10/2019 2.00% 1,507,305.00 1,501,717.35 99.18 3.01% 1,487,772.00 1,947.92 1.77% (13,945.35) Aaa /AA+ NR 0.94 0.92 3137EAES4 FHLMC Note 0.250%Due 06/26/2023 1,305,000.00 06/24/2020 0.35% 1,301,189.40 1,303,747.20 97.33 3.01% 1,270,164.33 45.31 1.51% (33,582.87) Aaa /AA+ AAA 0.99 0.97 3135G05G4 FNMA Note 0.250%Due 07/10/2023 1,460,000.00 Various 0.28% 1,458,850.00 1,459,607.79 97.35 2.88% 1,421,337.74 1,733.75 1.69% (38,270.05) Aaa /AA+ AAA 1.03 1.01 3133EL3V4 FFCB Note 0.200%Due 08/14/2023 1,500,000.00 08/12/2020 0.27% 1,496,880.00 1,498,830.36 97.05 2.89% 1,455,681.00 1,141.67 1.73% (43,149.36) Aaa /AA+ AAA 1.12 1.10 3137EAEV7 FHLMC Note 0.250%Due 08/24/2023 1,500,000.00 09/28/2020 0.22% 1,501,095.00 1,500,433.24 97.03 2.90% 1,455,420.00 1,322.92 1.73% (45,013.24) Aaa /AA+ AAA 1.15 1.13 3137EAEW5 FHLMC Note 0.250%Due 09/08/2023 1,490,000.00 Various 0.26% 1,489,430.30 1,489,774.43 96.95 2.88% 1,444,590.76 1,169.23 1.72% (45,183.67) Aaa /AA+ AAA 1.19 1.17 3137EAEZ8 FHLMC Note 0.250%Due 11/06/2023 1,455,000.00 11/03/2020 0.28% 1,453,690.50 1,454,410.96 96.52 2.90% 1,404,355.82 555.73 1.67% (50,055.14) Aaa /AA+ AAA 1.35 1.33 3135G06H1 FNMA Note 0.250%Due 11/27/2023 1,500,000.00 11/24/2020 0.27% 1,499,160.00 1,499,604.62 96.41 2.87% 1,446,178.50 354.17 1.72% (53,426.12) Aaa /AA+ AAA 1.41 1.39 As of June 30, 2022 29 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3137EAFA2 FHLMC Note 0.250%Due 12/04/2023 1,500,000.00 12/09/2020 0.26% 1,499,610.00 1,499,813.24 96.30 2.92% 1,444,434.00 281.25 1.71% (55,379.24) Aaa /AA+ AAA 1.43 1.41 3135G0V34 FNMA Note 2.500%Due 02/05/2024 1,700,000.00 03/24/2020 0.82% 1,808,052.00 1,744,690.06 99.36 2.91% 1,689,053.70 17,236.11 2.02% (55,636.36) Aaa /AA+ AAA 1.60 1.54 3130A7PH2 FHLB Note 1.875%Due 03/08/2024 1,500,000.00 03/03/2020 0.85% 1,560,525.00 1,525,449.42 98.22 2.97% 1,473,226.50 8,828.13 1.76% (52,222.92) Aaa /AA+ NR 1.69 1.64 3133ENKS8 FFCB Note 1.125%Due 01/06/2025 595,000.00 01/06/2022 1.20% 593,661.25 593,871.08 95.54 2.98% 568,471.93 3,160.94 0.68% (25,399.15) Aaa /AA+ AAA 2.52 2.44 3133ENPG9 FFCB Note 1.750%Due 02/14/2025 1,500,000.00 Various 1.83% 1,496,422.50 1,496,843.77 96.80 3.03% 1,452,022.50 9,916.66 1.73% (44,821.27) Aaa /AA+ AAA 2.63 2.52 3133ENPY0 FFCB Note 1.750%Due 02/25/2025 750,000.00 03/14/2022 2.06% 743,440.50 744,097.67 97.18 2.86% 728,877.75 4,593.75 0.87% (15,219.92) Aaa /AA+ AAA 2.66 2.55 3133ENWH9 FFCB Note 2.900%Due 05/09/2025 1,000,000.00 05/03/2022 2.97% 998,050.00 998,144.30 99.67 3.02% 996,703.00 4,188.89 1.19% (1,441.30) Aaa /AA+ AAA 2.86 2.71 3135G05X7 FNMA Note 0.375%Due 08/25/2025 1,000,000.00 12/09/2021 1.17% 971,060.00 975,398.86 91.94 3.08% 919,372.00 1,312.50 1.09% (56,026.86) Aaa /AA+ AAA 3.16 3.08 TOTAL Agency 30,410,000.00 1.01% 30,529,454.60 30,440,966.50 2.80% 29,717,340.34 97,206.25 35.38% (723,626.16) Aaa /AA+ Aaa 1.32 1.28 Corporate 69371RQ33 Paccar Financial Corp Note 2.000%Due 09/26/2022 500,000.00 09/23/2019 2.04% 499,390.00 499,951.58 99.83 2.70% 499,156.50 2,638.89 0.60% (795.08) A1 / A+ NR 0.24 0.24 166764AB6 Chevron Corp Callable Note Cont 9/5/2022 2.355%Due 12/05/2022 255,000.00 06/19/2019 2.28% 255,606.90 255,075.44 99.91 2.56% 254,774.07 433.71 0.30% (301.37) Aa2 /AA- NR 0.43 0.43 89236TEL5 ToyotaMotor CreditCorp Note 2.700%Due 01/11/2023 1,000,000.00 01/25/2019 3.22% 980,920.00 997,434.84 99.69 3.29% 996,923.00 12,750.00 1.20% (511.84) A1 / A+ A+ 0.53 0.52 90331HNL3 US Bank NA Callable Note Cont 12/23/2022 2.850%Due 01/23/2023 750,000.00 04/29/2019 2.77% 752,190.00 750,330.75 99.97 2.90% 749,791.50 9,381.25 0.90% (539.25) A1 / AA- AA- 0.57 0.55 06406RAE7 Bank of NY Mellon Corp Callable Note Cont 12/29/2022 2.950%Due 01/29/2023 750,000.00 07/25/2019 2.37% 764,625.00 752,422.27 99.90 3.12% 749,253.75 9,341.67 0.90% (3,168.52) A1 / A AA- 0.58 0.56 037833AK6 Apple Inc Note 2.400%Due 05/03/2023 750,000.00 05/29/2019 2.54% 746,205.00 749,189.62 99.53 2.97% 746,478.00 2,900.00 0.89% (2,711.62) Aaa /AA+ NR 0.84 0.82 931142EK5 Wal-Mart Stores Callable Note Cont 5/26/2023 3.400%Due 06/26/2023 800,000.00 03/27/2019 2.54% 827,616.00 806,414.04 100.31 3.06% 802,444.00 377.78 0.95% (3,970.04) Aa2 /AA AA 0.99 0.89 As of June 30, 2022 30 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 02665WCT6 American Honda Finance Note 3.550%Due 01/12/2024 950,000.00 08/19/2019 2.07% 1,008,634.00 970,457.97 100.20 3.41% 951,943.70 15,832.01 1.15% (18,514.27) A3 / A- A 1.54 1.46 24422EVN6 John Deere Capital Corp Note 0.450%Due 01/17/2024 615,000.00 03/01/2021 0.47% 614,563.35 614,764.82 95.94 3.16% 590,032.23 1,260.75 0.70% (24,732.59) A2 / A A 1.55 1.52 808513BN4 Charles SchwabCorp Callable Note Cont 2/18/2024 0.750%Due 03/18/2024 1,000,000.00 11/17/2021 0.92% 996,020.00 997,068.85 95.98 3.17% 959,814.00 2,145.83 1.14% (37,254.85) A2 / A A 1.72 1.68 023135BW5 Amazon.com Inc Note 0.450%Due 05/12/2024 1,000,000.00 Various 0.69% 994,141.10 995,627.97 95.16 3.14% 951,569.00 612.51 1.13% (44,058.97) A1 / AA AA- 1.87 1.83 14913R2L0 Caterpillar Financial Service Note 0.450%Due 05/17/2024 905,000.00 05/10/2021 0.50% 903,787.30 904,240.96 94.79 3.33% 857,892.94 497.75 1.02% (46,348.02) A2 / A A 1.88 1.84 24422EVQ9 John Deere Capital Corp Note 0.450%Due 06/07/2024 540,000.00 06/07/2021 0.49% 539,325.00 539,563.38 94.54 3.39% 510,524.10 162.00 0.61% (29,039.28) A2 / A A 1.94 1.90 69371RR40 Paccar Financial Corp Note 0.500%Due 08/09/2024 385,000.00 08/03/2021 0.52% 384,792.10 384,853.94 94.15 3.40% 362,495.21 759.31 0.43% (22,358.73) A1 / A+ NR 2.11 2.06 57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025 2.000%Due 03/03/2025 1,000,000.00 02/25/2022 2.03% 999,010.00 999,120.00 96.51 3.37% 965,140.00 6,555.56 1.15% (33,980.00) A1 / A+ NR 2.68 2.56 037833DT4 Apple Inc Callable Note Cont 4/11/2025 1.125%Due 05/11/2025 500,000.00 02/25/2022 2.04% 485,870.00 487,347.17 93.95 3.36% 469,759.50 781.25 0.56% (17,587.67) Aaa /AA+ NR 2.87 2.77 46647PCH7 JPMorgan Chase &Co Callable Note Cont 6/1/2024 0.824%Due 06/01/2025 750,000.00 05/24/2021 1.10% 750,972.00 750,709.20 93.53 3.60% 701,457.75 515.00 0.83% (49,251.45) A2 / A- AA- 2.92 2.83 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1.746%Due 02/06/2026 265,000.00 02/02/2022 2.12% 265,000.00 265,000.00 94.48 3.82% 250,379.95 1,850.76 0.30% (14,620.05) A1 / A AA- 3.61 3.40 TOTAL Corporate 12,715,000.00 1.72% 12,768,667.75 12,719,572.80 3.21% 12,369,829.20 68,796.03 14.76% (349,743.60) A1 /A+ A+ 1.54 1.49 LAIF 90LAIF$00 Local Agency Investment Fund State Pool 75,270.35 Various 0.94% 75,270.35 75,270.35 1.00 0.94% 75,270.35 166.28 0.09% 0.00 NR /NR NR 0.00 0.00 TOTAL LAIF 75,270.35 0.94% 75,270.35 75,270.35 0.94% 75,270.35 166.28 0.09% 0.00 NR /NR NR 0.00 0.00 As of June 30, 2022 31 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Money Market Fund 94975H296 Wells FargoTreasury Plus MMFD 453 233,808.67 Various 1.24% 233,808.67 233,808.67 1.00 1.24% 233,808.67 0.00 0.28% 0.00 Aaa /AAA NR 0.00 0.00 TOTAL Money Market Fund 233,808.67 1.24% 233,808.67 233,808.67 1.24% 233,808.67 0.00 0.28% 0.00 Aaa /AAA NR 0.00 0.00 Supranational 459058JM6 Intl. Bank Recon &Development Note 0.250%Due 11/24/2023 355,000.00 11/17/2020 0.32% 354,236.75 354,643.82 96.44 2.86% 342,359.16 91.22 0.41% (12,284.66) Aaa /AAA AAA 1.40 1.38 4581X0DZ8 Inter-American Dev Bank Note 0.500%Due 09/23/2024 1,250,000.00 09/15/2021 0.52% 1,249,075.00 1,249,312.16 94.58 3.03% 1,182,200.00 1,701.39 1.40% (67,112.16) Aaa /AAA NR 2.24 2.18 45950KCR9 International Finance Corp Note 1.375%Due 10/16/2024 1,000,000.00 07/29/2021 0.46% 1,028,980.00 1,020,738.89 96.33 3.04% 963,328.00 2,864.58 1.15% (57,410.89) Aaa /AAA NR 2.30 2.23 TOTAL Supranational 2,605,000.00 0.47% 2,632,291.75 2,624,694.87 3.01% 2,487,887.16 4,657.19 2.96% (136,807.71) Aaa /AAA Aaa 2.15 2.09 US Treasury 912828L24 US Treasury Note 1.875%Due 08/31/2022 900,000.00 10/04/2018 3.01% 862,488.28 898,395.36 100.05 1.57% 900,441.00 5,640.29 1.08% 2,045.64 Aaa /AA+ AAA 0.17 0.17 912828M80 US Treasury Note 2.000%Due 11/30/2022 950,000.00 04/29/2019 2.28% 940,759.77 948,927.85 99.85 2.35% 948,590.20 1,609.29 1.13% (337.65) Aaa /AA+ AAA 0.42 0.41 912828R28 US Treasury Note 1.625%Due 04/30/2023 1,500,000.00 06/19/2019 1.87% 1,486,582.03 1,497,116.56 98.98 2.87% 1,484,707.50 4,106.66 1.77% (12,409.06) Aaa /AA+ AAA 0.83 0.82 912828T91 US Treasury Note 1.625%Due 10/31/2023 1,500,000.00 09/13/2019 1.78% 1,490,917.97 1,497,063.12 98.32 2.92% 1,474,804.50 4,106.66 1.75% (22,258.62) Aaa /AA+ AAA 1.34 1.30 91282CBA8 US Treasury Note 0.125%Due 12/15/2023 750,000.00 01/08/2021 0.22% 747,861.33 748,934.67 96.02 2.93% 720,146.25 40.98 0.85% (28,788.42) Aaa /AA+ AAA 1.46 1.44 91282CBV2 US Treasury Note 0.375%Due 04/15/2024 1,000,000.00 04/14/2021 0.36% 1,000,351.56 1,000,209.78 95.54 2.95% 955,391.00 788.93 1.13% (44,818.78) Aaa /AA+ AAA 1.79 1.76 91282CCC3 US Treasury Note 0.250%Due 05/15/2024 1,250,000.00 05/12/2021 0.36% 1,246,093.75 1,247,557.70 95.12 2.94% 1,189,013.75 399.12 1.41% (58,543.95) Aaa /AA+ AAA 1.88 1.84 91282CCG4 US Treasury Note 0.250%Due 06/15/2024 1,500,000.00 06/10/2021 0.33% 1,496,542.97 1,497,744.73 94.91 2.94% 1,423,653.00 163.93 1.69% (74,091.73) Aaa /AA+ AAA 1.96 1.93 91282CCL3 US Treasury Note 0.375%Due 07/15/2024 1,500,000.00 07/28/2021 0.38% 1,499,648.44 1,499,757.94 94.94 2.95% 1,424,062.50 2,594.96 1.69% (75,695.44) Aaa /AA+ AAA 2.04 2.00 As of June 30, 2022 32 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 912828YE4 US Treasury Note 1.250%Due 08/31/2024 1,000,000.00 02/09/2021 0.26% 1,034,804.69 1,021,236.76 96.43 2.96% 964,258.00 4,177.99 1.15% (56,978.76) Aaa /AA+ AAA 2.17 2.11 91282CCX7 US Treasury Note 0.375%Due 09/15/2024 1,400,000.00 09/13/2021 0.44% 1,397,265.63 1,397,986.65 94.47 2.98% 1,322,563.20 1,540.76 1.57% (75,423.45) Aaa /AA+ AAA 2.21 2.17 912828YM6 US Treasury Note 1.500%Due 10/31/2024 1,350,000.00 08/06/2021 0.45% 1,395,246.09 1,382,735.30 96.70 2.98% 1,305,386.55 3,411.68 1.55% (77,348.75) Aaa /AA+ AAA 2.34 2.26 91282CDH1 US Treasury Note 0.750%Due 11/15/2024 1,500,000.00 11/10/2021 0.80% 1,497,832.03 1,498,283.03 94.90 2.99% 1,423,476.00 1,436.82 1.69% (74,807.03) Aaa /AA+ AAA 2.38 2.32 91282CDN8 US Treasury Note 1.000%Due 12/15/2024 850,000.00 01/26/2022 1.39% 840,636.72 842,014.98 95.32 2.99% 810,189.40 371.58 0.96% (31,825.58) Aaa /AA+ AAA 2.46 2.40 912828YY0 US Treasury Note 1.750%Due 12/31/2024 1,500,000.00 03/15/2022 2.03% 1,488,632.81 1,489,824.08 97.00 3.00% 1,455,058.50 71.33 1.73% (34,765.58) Aaa /AA+ AAA 2.51 2.42 912828Z52 US Treasury Note 1.375%Due 01/31/2025 1,500,000.00 02/24/2021 0.40% 1,557,011.72 1,537,518.16 96.00 2.99% 1,440,000.00 8,603.25 1.72% (97,518.16) Aaa /AA+ AAA 2.59 2.50 912828ZC7 US Treasury Note 1.125%Due 02/28/2025 1,000,000.00 02/03/2022 1.43% 990,820.31 992,025.14 95.27 2.98% 952,734.00 3,760.19 1.13% (39,291.14) Aaa /AA+ AAA 2.67 2.59 912828ZF0 US Treasury Note 0.500%Due 03/31/2025 1,350,000.00 Various 0.66% 1,342,150.39 1,344,207.52 93.43 3.01% 1,261,248.30 1,696.73 1.50% (82,959.22) Aaa /AA+ AAA 2.75 2.69 912828ZL7 US Treasury Note 0.375%Due 04/30/2025 2,000,000.00 Various 1.49% 1,934,296.88 1,937,586.85 92.91 3.00% 1,858,124.00 1,263.58 2.21% (79,462.85) Aaa /AA+ AAA 2.84 2.78 912828ZT0 US Treasury Note 0.250%Due 05/31/2025 1,500,000.00 06/11/2021 0.53% 1,483,359.38 1,487,752.41 92.38 3.00% 1,385,683.50 317.62 1.64% (102,068.91) Aaa /AA+ AAA 2.92 2.87 912828ZW3 US Treasury Note 0.250%Due 06/30/2025 1,500,000.00 07/29/2021 0.56% 1,482,246.09 1,486,414.72 92.17 3.00% 1,382,578.50 10.19 1.64% (103,836.22) Aaa /AA+ AAA 3.00 2.95 91282CAB7 US Treasury Note 0.250%Due 07/31/2025 1,350,000.00 12/02/2021 1.06% 1,310,871.09 1,317,021.59 91.92 3.01% 1,240,893.00 1,407.80 1.47% (76,128.59) Aaa /AA+ AAA 3.09 3.03 912828K74 US Treasury Note 2.000%Due 08/15/2025 1,500,000.00 04/21/2022 2.96% 1,454,882.81 1,457,490.74 96.99 3.02% 1,454,824.50 11,270.72 1.74% (2,666.24) Aaa /AA+ AAA 3.13 2.98 9128285C0 US Treasury Note 3.000%Due 09/30/2025 1,500,000.00 04/21/2022 2.96% 1,502,109.38 1,501,991.91 99.96 3.01% 1,499,472.00 11,311.48 1.79% (2,519.91) Aaa /AA+ AAA 3.25 3.05 9128285J5 US Treasury Note 3.000%Due 10/31/2025 1,600,000.00 06/02/2022 2.87% 1,606,562.50 1,606,415.03 99.95 3.02% 1,599,187.20 8,086.96 1.91% (7,227.83) Aaa /AA+ AAA 3.34 3.14 As of June 30, 2022 33 Holdings Report Danville Short TermTreasuryPool - Account #21 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 912828M56 US Treasury Note 2.250%Due 11/15/2025 1,700,000.00 06/09/2022 3.05% 1,655,839.84 1,656,579.36 97.51 3.03% 1,657,632.60 4,885.19 1.97% 1,053.24 Aaa /AA+ AAA 3.38 3.21 TOTAL US Treasury 34,950,000.00 1.34% 34,745,814.46 34,792,791.94 2.92% 33,534,118.95 83,074.69 39.89% (1,258,672.99) Aaa /AA+ Aaa 2.36 2.28 TOTAL PORTFOLIO 86,754,502.10 1.26% 86,750,096.67 86,652,027.10 2.97% 84,017,837.87 257,100.31 100.00% (2,634,189.23) Aa1 /AA+ Aaa 1.93 1.73 TOTAL MARKET VALUE PLUS ACCRUALS 84,274,938.18 As of June 30, 2022 34 Holdings Report Danville NERIAD Improvement Fund (89-1 90A) - Account #24 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody/S&P Fitch Maturity Duration Money Market Fund 94975H296 Wells FargoTreasury Plus MMFD 453 9,308.91 Various 1.24% 9,308.91 9,308.91 1.00 1.24% 9,308.91 0.00 1.08% 0.00 Aaa /AAA NR 0.00 0.00 TOTAL Money Market Fund 9,308.91 1.24% 9,308.91 9,308.91 1.24% 9,308.91 0.00 1.08% 0.00 Aaa /AAA NR 0.00 0.00 US Treasury 912796K57 US Treasury Bill 0.070%Due 07/14/2022 235,000.00 07/19/2021 0.07% 234,835.96 234,835.96 99.93 0.07% 234,835.96 158.10 27.17% 0.00 P-1/ A-1+ F-1+ 0.04 0.04 91282CAR2 US Treasury Note 0.125%Due 10/31/2022 125,000.00 11/29/2021 0.20% 124,916.99 124,969.77 99.34 2.11% 124,176.38 26.32 14.36% (793.39) Aaa /AA+ AAA 0.34 0.33 912796N96 US Treasury Bill 0.143%Due 11/03/2022 250,000.00 11/04/2021 0.14% 249,640.78 249,640.78 99.86 0.14% 249,640.78 235.52 28.89% 0.00 P-1/ A-1+ F-1+ 0.35 0.34 912828ZD5 US Treasury Note 0.500%Due 03/15/2023 250,000.00 03/30/2022 1.66% 247,255.86 247,979.24 98.45 2.72% 246,123.00 366.85 28.50% (1,856.24) Aaa /AA+ AAA 0.71 0.70 TOTAL US Treasury 860,000.00 0.57% 856,649.59 857,425.75 1.15% 854,776.12 786.79 98.92% (2,649.63) Aaa /AAA Aaa 0.36 0.36 TOTAL PORTFOLIO 869,308.91 0.58% 865,958.50 866,734.66 1.15% 864,085.03 786.79 100.00% (2,649.63) Aaa /AAA Aaa 0.36 0.36 TOTAL MARKET VALUE PLUS ACCRUALS 864,871.82 As of June 30, 2022 35 Section 4 |Transactions 36 Transaction Ledger Danville Short TermTreasuryPool - Account #21 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 04/13/2022 362585AC5 260,000.00 GM Financial Securitized ART 2022-2 A3 3.1%Due:02/16/2027 99.979 3.13%259,945.66 0.00 259,945.66 0.00 Purchase 04/22/2022 9128285C0 1,500,000.00 US Treasury Note 3%Due:09/30/2025 100.141 2.96%1,502,109.38 2,704.92 1,504,814.30 0.00 Purchase 04/22/2022 912828K74 1,500,000.00 US Treasury Note 2%Due:08/15/2025 96.992 2.96%1,454,882.81 5,469.61 1,460,352.42 0.00 Purchase 04/28/2022 912828ZL7 1,000,000.00 US Treasury Note 0.375%Due:04/30/2025 93.234 2.74%932,343.75 1,854.28 934,198.03 0.00 Purchase 05/09/2022 3133ENWH9 1,000,000.00 FFCB Note 2.9%Due:05/09/2025 99.805 2.97%998,050.00 0.00 998,050.00 0.00 Purchase 05/11/2022 36266FAC3 450,000.00 GM Financial Auto Lease Trust 2022-2 A3 3.42%Due:06/20/2025 99.990 3.45%449,953.07 0.00 449,953.07 0.00 Purchase 05/18/2022 05602RAD3 300,000.00 BMW Vehicle Owner Trust 2022-A A3 3.21%Due:08/25/2026 99.995 3.23%299,984.40 0.00 299,984.40 0.00 Purchase 06/03/2022 9128285J5 1,600,000.00 US Treasury Note 3%Due:10/31/2025 100.410 2.87%1,606,562.50 4,434.78 1,610,997.28 0.00 Purchase 06/10/2022 912828M56 1,700,000.00 US Treasury Note 2.25%Due:11/15/2025 97.402 3.05%1,655,839.84 2,702.45 1,658,542.29 0.00 Subtotal 9,310,000.00 9,159,671.41 17,166.04 9,176,837.45 0.00 TOTAL ACQUISITIONS 9,310,000.00 9,159,671.41 17,166.04 9,176,837.45 0.00 DISPOSITIONS Maturity 04/14/2022 4581X0CN6 1,100,000.00 Inter-American Dev Bank Note 1.75%Due:04/14/2022 100.000 1,100,000.00 0.00 1,100,000.00 0.00 Maturity 05/15/2022 084664BT7 1,000,000.00 Berkshire Hathaway Note 3%Due:05/15/2022 100.000 1,000,000.00 0.00 1,000,000.00 0.00 March 31,2022 throughJune 30,2022 As of June 30, 2022 37 Transaction Ledger Danville Short TermTreasuryPool - Account #21 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Maturity 06/10/2022 3130AEBM1 1,475,000.00 FHLB Note 2.75%Due:06/10/2022 100.000 1,475,000.00 0.00 1,475,000.00 0.00 Subtotal 3,575,000.00 3,575,000.00 0.00 3,575,000.00 0.00 TOTAL DISPOSITIONS 3,575,000.00 3,575,000.00 0.00 3,575,000.00 0.00 March 31,2022 throughJune 30,2022 As of June 30, 2022 38 Important Disclosures 2022 Chandler Asset Management,Inc,An Independent Registered Investment Adviser. Information contained herein is confidential.Prices are provided by ICE Data Services Inc (“IDS”),an independent pricing source.In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of dividends and other earnings.Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.All investment strategies have the potential for profit or loss.Economic factors,market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions.Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee,the incurrence of whichwould have the effect of decreasing historical performance results.It is not possible to invest directly in an index. Source ICE Data Indices,LLC ("ICE"),used with permission. ICE permits use of the ICE indices and related data on an "as is"basis;ICE,its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use,including the indices,index data and any data included in,related to,or derived therefrom.Neither ICE data,its affiliates or their respective third party providers guarantee the quality,adequacy,accuracy,timeliness or completeness of the indices or the index data or any component thereof,and the indices and index data and all components thereof are provided on an "as is"basis and licensee's use it at licensee's own risk.ICE data,its affiliates and their respective third party do not sponsor,endorse,or recommend chandler asset management,or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice.The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice.Any opinions or views expressed are based on current market conditions and are subject to change.This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results.Past performance is not indicative of future results.This report is not intended to constitute an offer,solicitation,recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest,credit and market risk.Interest rate risk:the value of fixed income investments will decline as interest rates rise.Credit risk:the possibility that the borrower may not be able to repay interest and principal.Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk.Market risk:the bond market in general could decline due to economic conditions,especially during periods of rising interest rates. Ratings information have been provided by Moody’s,S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannotguarantee its accuracy. Security level ratings for U.S.Agency issued mortgage-backed securities (“MBS”)reflect the issuer rating because the securities themselves are not rated.The issuing U.S.Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P,Moody’s and Fitch respectively. As of June 30, 2022 39 Benchmark Disclosures ICE BofA 1-3 Yr US Treasury Index The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market.Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity,a fixed coupon schedule,and a minimum amount outstanding of $1 billion.Qualifying securities must haveat least 18 months to final maturity at the time of issuance. ICE BofA 3-Month US Treasury Bill Index The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month.At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstandingTreasury Bill thatmatures closest to, but not beyond,three months from the rebalancing date. ICE BofA 1-3 Yr AAA-A US Corp &Govt Index The ICE BofA 1-3 AAA-A Year US Corporate &Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market,including US Treasury, US agency,foreign government, supranational,and corporate securities.Qualifying securities must be rated AAA through A3 (based on an average of Moody’s,S&P and Fitch).In addition,qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity,at least 18 months to final maturity at point of issuance,a fixed coupon schedule,and a minimum amountoutstanding of $1 billion for US Treasuriesand $250 million for all other securities. As of June 30, 2022 40 Supplement to Quarterly Investment Report Town Managed Cash Account Average Average Maturity Yield Cost Town Funds 0 0.684%11,470,531 Trust Fund 0 0.684%1,700,559 . Community Development Agency DS/Successor Agency 0 0.684%52,363 NERIAD 0 0.684%374,000 Total LAIF Funds Managed by the Town 13,597,453$ LAIF Funds Managed/Reported by Chandler Investments 75,270 Total LAIF Funds 13,672,723$ LAIF Funds Managed by the Town (Local Agency Investment Fund) May 2022